Online gambling is a form of gaming that involves placing wagers and wagering on the outcome of a contest of chance. It includes games of chance, including casino games, slots, and poker. Some states also allow online sports betting.
The online gambling industry has been growing in recent years. In 1998, a Frost & Sullivan report estimated that the worldwide online gambling market would reach $830 million. There were about fifteen websites operating at that time.
However, state law has not been particularly active in enforcing Internet gambling laws. This has prompted questions about the Commerce Clause. If state law applies to the Internet, it may be unconstitutional.
In response to this, House Representatives introduced several bills to soften the federal internet gambling laws. One of them, the Internet Gambling Regulation and Tax Enforcement Act, would license and regulate online gambling businesses. Another bill, the Skill Game Protection Act, would clarify the Wire Act to exempt certain types of gambling.
Since 2007, the House has introduced several similar bills. The House Committee on the Judiciary held hearings on the policies for wagering on the Internet. While these bills have failed, they have sparked discussion about the legality of Internet gambling.
The Justice Department has argued that Internet gambling is illegal. They argue that the Wire Act applies to all forms of Internet gambling.
Moreover, the federal Indian Gaming Regulatory Act governs gambling activity on Indian reservations. This act includes some specific provisions that prohibit Internet gambling.